Compound Interest (Part 1 and 2)Excel Work in Detail
Because the CEO wants to increase salaries for all hourly employees and software analysts, there needs to be a count of the employees in each category.
1. Create an additional worksheet named “DB Calculations.”
2. Set up a criteria range in the first few rows and columns to identify all hourly employees.
3. Set up a second criteria range in the columns next to the first to identify the software analysts with salaries less than $55,000.
4. In any cell beneath each criteria range, use the DCOUNT function tocalculate the number of hourly employees using the first criteria range, and then again to calculate the number of software analysts with salaries less than $55,000.
5. Multiply the count of hourly employees by 2,000, and the count of software
analysts with salaries less than $55,000 by 4,000. The sum of these two numbers
will be the total funding needed to execute the CEO’s plan.
Part 2: Use the funding you calculated in Part 1A and the appropriate compound interest formulas you learned in business algebra to calculate the investment amounts for options 1 and 2. Show your calculations in any empty area on the worksheet created in Part 1.
PV – Returns the present value of a future amount
PMT – Calculates the payment necessary to accumulate a future amount
Compound Interest Formulas:
A = P(1 + i)n
FV = PMT ×
(1 + i)n –